Saudi Arabia is planning to enforce $50 oil price floor. What that could mean for us?

Generally drop in oil prices results in growth chemical, retail and of course energy sectors (petroleum companies generally increase profits by lagging behind with actual gasoline price reduction). If we would assume that oil prices will not go any lower it’s only can mean that price will either stabilize or would go higher which would negative pressure on corporate profits in US and Europe. Alternative energy sources may eventually reduce oil dependency but it will take years before that will happen.

Target: C, S & I Funds: Short-term: Neutral / Long-term: Negative